Am I Entitled to Gratuity After Inter-Company Transfers Without 5 Years in One Place?

Hi all,

I worked for a company from 2000 until 2003 when the management transferred me to another group company after providing me with a full and final settlement in my previous role. I then left this company in 2007. I believe I am eligible for gratuity as I worked for the company for 7 years. However, the company states that since I did not complete 5 years in any one company, I am not eligible for gratuity.

Please advise.

In India, according to the Payment of Gratuity Act, 1972, an employee is eligible for gratuity after completing at least 5 years of continuous service with the same employer. In cases of inter-company transfers where the employee has not completed 5 years in a single company due to transfers between group companies, the total duration of service across the group companies can be considered for gratuity eligibility. It is essential to review the specific circumstances of the transfers and the group structure to determine if the service can be aggregated for gratuity calculation purposes. I recommend consulting with a legal expert or the labor department to understand your rights and options regarding gratuity entitlement in this scenario.